Help Save C Forten Company, a merchandiser, recently completed its calendar-year 2018 operations. For the year. (all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company's income statement, balance sheets, and additional information follow FORTEN COMPANY Comparative Balance Sheets December 31, 2018 and 2017 2013 2012 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current abilities Long-term notes payable Total liabilities Equity Common stock, 35 par value Paid in capital in excess of any common stock Retained earnings $ 66,400 82,380 292,156 1220 442,256 146,500 (42.125) $546,631 $ 84,500 61,625 262,800 2.115 411,040 119,000 (51.500) $ 478,540 564,141 13.300 77441 59.500 136,41 131,175 8,200 139,375 166.750 184,750 54,00 170.140 112,005 Saved CON LULA, P2 par vai Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity 100,00 109,90 54,000 170,940 $ 546,631 112,665 $ 478,540 $ 637,500 296,000 341,500 FORTEN COMPANY Income Statement For Year Ended December 31, 2018 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 31,750 Other expenses 143,400 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net Income 175,150 (16,125) 150, 225 39,650 $ 110,575 Problem 12-3A Indirect: Statement of cash flows LO A1, P1, P2, P3 Additional Information on Year 2018 Transactions Prav 1 of 1 Nox Required information C Additional Information on Year 2018 Transactions a. The loss on the cash sale of equipment was $16.125 (details in B). b. Sold equipment costing $79,875, with accumulated depreciation of $41125, for $22,625 cash. c. Purchased equipment costing $107,375 by paying $52,000 cash and signing a long-term note payable for the balance. d. Borrowed $5,100 cash by signing a short-term note payable. e. Paid $55,625 cash to reduce the long-term notes payable. f. Issued 3.600 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $52,300. Required: 1. Prepare a complete statement of cash flows; report its operating activities using the indirect method (Amounts to be deducted should be indicated with a minus sign.) FORTEN COMPANY Statement of Cash Flows For Year Ended December 31, 2018 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations Pre 1 of 1 Ned ARARA Required information For Year End December 31, 2010 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Changes in current assets and current liabilities Cash flows from investing activities Cash flows from financing activities Net Increase lootesse in cash Cash balance at December 31, 2017 Cash balance at December 31, 2018